Grain SA welcomes the announcement by the Honourable Minister of Agriculture, John Steenhuisen, that the designation of Leaf Services as an assignee under the Agricultural Product Standards Act, 119 of 1990, has officially been revoked.
Victory for Transparency and Accountability
This decision follows years of persistent engagement by Grain SA and other stakeholders across the grain industry, who raised deep concerns about the lack of transparency, stakeholder consultation, and cost implications associated with Leaf Services’ proposed role in grading inspections.
“We commend the Minister and the Department for the significant progress made toward a regulatory environment that is principled, transparent, and accountable,” said Dr Tobias Doyer, CEO of Grain SA. “These strides reflect a growing commitment to regulatory stewardship that aligns with global best practices.”
Years of Advocacy and Legal Action
Since 2016, Grain SA has actively opposed the implementation of Leaf Services’ custodianship over the grain grading system, citing excessive costs to producers – estimated at tens of millions of rands annually – without sufficient consultation or methodological justification. Formal objections were submitted, legal advice pursued, and a direct appeal was made to the Ministry in 2024 to revoke the appointment of Leaf Services.
A Major Cost Saving for Grain Producers
Had the proposed R4-per-ton fee by Leaf Services been implemented in 2016 as intended, it would have cost our members more than R600 million to date. Seen differently, this revocation represents a R600 million saving for grain producers. Grain SA itself incurred R135 000 in legal costs to appeal the proposed implementation – an investment made in the best interest of our members and the broader industry.
Towards Better Regulatory Partnerships
“The grain industry supports regulation that is coherent, cost-effective, enabling and respectful of the rights and responsibilities of both juristic and private actors across the food value chain,” added Doyer. “We believe that regulation, when properly applied, is not merely a safeguard – but a critical enabler of inclusive economic participation, innovation, and agricultural competitiveness.”
The Minister’s statement recognises these concerns, including Leaf Services’ failure to comply with procedural fairness and the absence of a substantive, consultative fee-setting framework. Importantly, the Department has indicated that inspection services will now be handled internally while a more effective Public-Private Partnership model is explored.
Looking Ahead
“Excessive, uncoordinated, or ineffective regulations create barriers to entry, deter investment, increase costs and unnecessary red tape in an industry that supplies staple food for the South Africans, and undermine South Africa’s potential for economic growth and job creation,” said Doyer. “It is therefore encouraging to see that government increasingly recognises the importance of regulatory quality as a cornerstone of national development.”
Grain SA believes that going forward, stronger, principled partnerships between government, industry, and the private sector are essential to building a regulatory framework that protects public interest while fostering productivity, sustainability, and prosperity – both in rural and urban communities.
Grain SA remains committed to constructive collaboration in shaping a more enabling policy and regulatory environment for South African agriculture.